Deeper Analysis
March and 1Q13 in Figures
March 30, 2013
Short-term interest rates remained ultra-low in the first quarter of 2013. The Federal Reserve retained an aggressive program of quantitative easing, while the Bank of Japan prepared to undertake an even more forceful monetary stimulus under new leadership. A number of key equity markets performed very well, especially Japan’s where the Nikkei-225 index jumped almost […] More
Foreign Exchange Insights and Next Week
Next Week
March 29, 2013
The first week of the second quarter, April and Japan’s fiscal year begins with a wide assortment of market closures in observance of Easter Monday. These include Britain, Germany, Canada, Poland, Thailand, Greece, Hong Kong, Hungary, the Netherlands, Denmark, Belgium, the Czech Republic, France, Germany, Italy, South Africa, Switzerland, New Zealand and Australia. Chinese markets […] More
New Overnight Developments Abroad - Daily Update
Good Friday 2013
March 29, 2013
Today saw an abundance of released Japanese data but also numerous market closures. The yen ticked 0.1% higher, and Japan’s Nikkei closed up 0.5%. The 10-year JGB yield is four basis points higher at 0.55%. Chinese stocks fell 0.2%. Good Friday market closures affect the United States, Canada, Australia, New Zealand, Germany, Britain, France, Italy, […] More
Foreign Exchange Insights and Next Week
Seeing is Believing
March 28, 2013
Speculation about moving to a one-to-one dollar per euro exchange rate has again surfaced. Ezone difficulties seem much more formidable than America’s problems, and they are complicated by the institution of a common currency that lacked proper political legitimacy at its inception and still does. The Economist has summed up the present state of European […] More
Central Bank Watch
National Bank of Romania Interest Stays Unchanged as Expected
March 28, 2013
Romania’s benchmark interest rate has been at 5.25% since four 25-basis point cuts spaced tightly between November 2011 and March 2012. Officials would like to ease further but can’t because of above-target CPI inflation. The target is 1.5 – 3.5%, whereas consumer prices rose by 5.65% in the twelve months to February. Officials are counting […] More
Central Bank Watch
Czech National Bank Rate Left at 0.05%
March 28, 2013
From a peak of 3.75% prior to August 2008, the two-week repo rate was slashed to 2.25% by end-2008 and 1.0% by end-2009. A single 25-basis point cut was made to 0.75% in May 2010, and no other change occurred thereafter until cuts of 25 bps last June, another 25 bps last September, and one […] More
Central Bank Watch
Central Bank of the Republic of China (Taiwan): Policy Left Unchanged
March 28, 2013
Monetary policy is reviewed on a quarterly basis in Taiwan. The benchmark interest rate is the discount rate. It has been at 1.875% since a 12.5-basis point hike in June 2011, which culminated a series of five consecutive equal-sized increases that was begun in June 2010. Earlier, the discount rate was slashed from 3.625% prior […] More
New Overnight Developments Abroad - Daily Update
Weaker Japanese and Chinese Share Prices
March 28, 2013
Equities slumped 3.3% in China on fear of more property market curbs. Weakness was concentrated in financials. The decline occurred in spite of data showing a strong 17.2% on-year advance in Chinese corporate earnings. The Japanese Nikkei fell 1.3% on the next to last day before the end of the fiscal year. Bank of Japan […] More
New Overnight Developments Abroad - Daily Update
Confidence in Europe Hurt by Cyprus Situation
March 27, 2013
Cypriot banks will reopen tomorrow with capital controls. Uninsured large depositors have taken a big hit. The euro sank as low as $1.2787, its weakest dollar value since November 21, 2012. There is fear of contagion in Europe. While stocks in the Pacific Rim closed mostly higher, European equities are down 1.7% in Spain, 1.2% […] More
Central Bank Watch
A Further Adjustment Made to Turkish Monetary Policy Settings
March 26, 2013
Officials at the Central Bank of the Republic of Turkey cut the overnight lending rate to 7.5% from 8.5% but left the 5.5% one-week repo rate at 5.5%, the overnight borrowing rate at 4.5%, and reserve requirements at 11.5%. The repo rate, which is the main indication of policy, has been 5.5% since a 25-basis […] More
